World Kinect (WKC) investor relations material

Executive summary

• Q2 2025 saw strong performance in Aviation, while Land and Marine segments underperformed due to divestitures, impairments, and market headwinds.

• Major divestitures included the sale of the U.K. land fuels business (Watson Fuels) and certain Brazilian assets, resulting in significant pre-tax losses and strategic refocus.

• Reported a GAAP net loss of $339M for Q2 2025, driven by $367M in non-cash impairments in Land and $32M in Marine, and a loss on the U.K. land fuels sale.

• Transformation initiatives included a global finance optimization program and restructuring charges, aiming for long-term cost savings and operational efficiency.

• Shareholder value initiatives included an 18% dividend increase and $35M–$45M in share repurchases in H1 2025.

Financial highlights

• Q2 2025 gross profit was $232M, down 5% year-over-year; consolidated volumes declined 3% to 4.2B gallons.

• Operating expenses surged to $577M due to $398.6M in impairment charges, but adjusted operating expenses declined 10% to $173M.

• Adjusted operating income increased 11% year-over-year; adjusted EBITDA rose to $87M from $81M.

• Net loss attributable to shareholders was $339M, compared to net income of $107M–$108M in Q2 2024.

• Operating cash flow for H1 2025 was $143M; free cash flow was $113M.

Outlook and guidance

• Q3 2025 consolidated gross profit guidance: $252M–$262M; operating expenses expected at $185M–$189M.

• Aviation gross profit expected to rise meaningfully year-over-year in Q3, led by European operations and government activity.

• Land segment to see sequential improvement in Q3, but year-over-year gross profit will remain lower due to portfolio changes and market challenges.

• Marine gross profit expected to remain weak due to ongoing challenges.

• Full-year adjusted effective tax rate projected at 20%–22%.